What is a REC? (Renewable Energy Certificate)

For the purposes of RECs calculations, Australia is divided up into 4 zones based on how much renewable energy can be generated in a given area. CQ area is Zone 1.



A Renewable Energy Certificate (REC) is an electronic, tradeable commodity equal to 1 Megawatt hour of renewable energy generation or each MWh displaced by not consuming carbon derived power to heat a conventional water heating system. A REC is similar to a share certificate as it represents a unit of value and may be traded for financial return. In the REC Registry, each REC is identified by a unique four-part code which includes:

* the Registered Person Number of the original creator of the certificate

* the accreditation (Power Source) of the power station, small generation unit or solar water heater for which the REC was created

* the year in which the REC was created

* a serial number

In the case of Solar Hot water Systems the government tests each manufactuers system and awards a number of REC’s directly relating to the performance of the system and the solar zone where the SHWS is installed . For example an Edwards L32 Titan attracts 34REC’s installed in the CQ area (Zone 1). The value of each REC fluctuates on the REC trading market with the value as of 10th May 2011 $25.

Therefore 34 X $25 = $850 of REC value may be assigned to the system once installed.

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